GBP/JPY Daily Outlook

GBP/JPY Daily Outlook

Daily Pivots: (S1) 153.95; (P) 155.07; (R1) 156.02; More.....

GBP/JPY rises again today but overall outlook is unchanged. Price action from 156.77 is viewed a consolidation pattern. We'd expect strong resistance from 156.77 to limit upside to bring another fall inside the pattern. Below 154.13 will turn bias back to the downside for 150.47 support and below. However, sustained break of 156.77 will indicate larger rally resumption for 160 psychological level next.

In the bigger picture, a medium term top is in place at 156.77 on bearish divergence condition in daily MACD. Deeper pull back could be seen to 38.2% retracement of 118.82 to 156.77 at 142.27 as consolidation from there extends. Strong support would likely be seen at 140.37 to bring rebound, at least on first attempt. Overall, we'd still expect whole rise from 116.83 medium term bottom to resume later to 163.05 resistance and above after completing the correction